The soaring prices of silver, driven by geopolitical conflicts, are severely impacting traditional bridal crafts in Lucknow, India. Prices began rising with Russia’s invasion of Ukraine in 2022 and surged further with the US and Israeli attacks on Iran. In 2023, silver prices in India fluctuated between $725 and $830 per kilogram before spiking to $985 in 2024. During the conflict with Iran, prices briefly reached $4,670 per kg before easing to around $2,600 per kg, still more than three times higher than a few years ago.
Dr. Salahuddin Ayyub, an economist with India’s Ministry of Commerce and Industry, explained that geopolitical tensions lead investors to seek safer assets like gold and silver, driving up demand and prices. In India, where silver is deeply tied to weddings and cultural traditions, many households are now opting for cheaper alternatives like artificial jewelry. However, artisans and silversmiths, whose livelihoods depend on precious metals, face shrinking demand and economic uncertainty.
The surge in silver prices has also led to government interventions to curb imports and protect foreign exchange reserves. India, which relies on imports for over 80% of its silver demand, saw a drastic 87% drop in silver imports in May 2024 due to doubled import taxes. These taxes, along with strict licensing, have pushed silver prices in India to trade 20% higher than global levels, adding to the financial strain on consumers and craftsmen alike.